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Cleanup in aisle 9 — 6 Capitol Hill stores planning to sell booze (+ 1 thinking about it)

We’ve already told you why March 1st is a big day in the annals of 1183, the initiative that has reshaped Washington’s liquor industry — it’s the day Capitol Hill distillery Oola can set out to control its own fate and begin self-distribution to area bars and restaurants. Three months from today is another 1183 milestone — June 1st will be the first day retailers not controlled by the state can begin selling booze. Here is a look at the six places — and possibly one more — where you’ll find the hard stuff on Capitol Hill come June.


To qualify, 1183 requires retailers to be at least 10,000 square feet — a proviso said to be designed to prevent unsavory bodegas from dealing in hooch and a formidable hurdle to any entity that wants to apply for an exception. It’s no surprise, then, that five of the six active applications for spirit retail on Capitol Hill come from grocery giants Safeway and QFC. The peculiar result: 15th Ave E becomes the booziest shopping strip on the Hill.

You also might be able to add at least one smaller, independent and community-minded grocery entity to that list. Madison’s Central Co-op this week decided to apply for the spirits retailing permit though the board has not yet decided whether the co-operative will stock hard liquor, a representative tells CHS. In the meantime, the co-op is covering its bases and plans to file paperwork.

Minis at BevMo! (Image: BevMo!)

We’re still checking with Trader Joe’s with their plans for their E Madison location. The grocery chain hasn’t filed to sell booze anywhere in the city yet but we haven’t heard back from the company. Some of its California stores, for example, do sell hard liquor so you might expect an even more Fearless Flyer soon.

Other grocery providers that might serve your Capitol Hill needs haven’t applied yet. Whole Foods is one. Metropolitan Market is another though we’ve heard hope that Metropolitan Market might provide at least one outlet in the city that is more locally focused. Costco, which pumped a lot of energy and even more money into 1183, also hasn’t turned its paperwork in yet — a sure sign that there are more retailers to come. And we won’t even mention Amazon Fresh — not yet, drunky drunk.

Meanwhile, a short drive will deliver thee unto BevMo which is planning a Southcenter installation and Target which has applied to sell booze at its Seattle and Eastside locations and throughout the state.

The picture around the big chain drugstores in the neighborhood is murkier. Representatives for Walgreens and Rite Aid have yet to reply to our inquiries about their plans and one representative was befuddled by the question. “Is this a change in the law?” the rep asked. But state records show that Walgreens has put their paperwork in for their 15th Ave E store to join the fray. We remember when it was news notable for the location to start selling beer and wine.

Of course, on Capitol Hill, you can also go directly to the source and buy directly from Oola’s tasting room. Sun Liquor hopes to someday also be able to offer off-premise sales. But you won’t be able to buy from the old state stores on 12th and Broadway. No word yet on what happens to the real estate. But come June 1, they’ll be long gone and you’ll be buying Jose Cuervo, toilet paper and Vanity Fair at Safeway. It’s going to be a great summer.

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Quail
Quail
12 years ago

I saw wine behind a locked display yesterday

jseattle
jseattle
12 years ago

They’ve had wine. This is about the spirits, Quail. Cheers.

sheba
12 years ago

1st it was the indie hardware stores then the indie bookstores etc.
It’s a shame the we cant by our liquor at our neighborhood stores like Vino Verite, European Vine Selections,12th and Olive Wine Co or Mont’s Market. These stores are owned by people in our neighborhood not out-of-State corps. To save a little money the voters threw these folks under the corporate bus wheels.
I’m not defending the State Liquor monopoly, I’m just commenting on how sad and unfair this 10,000 sq,ft limitation is. There is nothing “free market” about these limits!

DaveE
12 years ago

A word to the wise – you are going to be shocked at how much liquor prices go up on June 1st. I’ve seen several wholesale price lists the last week or so, and in a lot of cases wholesale pricing is about what retail pricing is now. I’d suggest laying in a good supply of whatever you drink now, at the state stores.

Another David
12 years ago

Agreed. Here’s hoping that the unfair 10k sq. ft. restriction can be lifted in later legislation.

DaveE
12 years ago

When Costco wrote the initiative there was an easy – and obvious – way to implement the stated objective of keeping liquor out of gas stations and convenience stores that would have allowed neighborhood wine shops to carry liquor. Wine shops operate under a “beer/wine specialty shop license” license, which requires that beer and wine sales make up most of the sales volume, while convenience stores and gas stations operate under a “grocery store” license, which allows them to sell food as well as beer and wine. I believe Costco also runs under a grocery store license. Of course, Costco wrote the law to allow grocery stores to sell spirits, but they intentionally shut out the little guys by not allowing the same for beer/wine specialty shops to sell spirits. This is what happens when you let large corporations write your laws for you.

One possible unintended consequence of the law is that I see no reason that a gas station couldn’t get a spirits license if the store there was at least 10,000sf. I wouldn’t be at all surprised if there were a few large suburban gas stations that have 10,000sf, and I wouldn’t be too surprised to see some pop up here and there too.

CapHill
12 years ago

I doubt prices will go up for long with 6 outlets already processing applications. competition will prevail and prices will go down.

sheba
12 years ago

The bottom-line price will not go down and is unaffected by 1183, which only applies to profits. The State never had a large mark-up over cost.
Prices will go up (profit margin) as they are already because there is no affect on the starting price.

jv
jv
12 years ago

That’s right “caphill.”
I buy for a local restaurant and my prices will be the same on some stuff and more on others. You might see stores offer the crap like cuervo and bacardi for cheaper, but quality stuff and small batch distilleries will stay the same and/or go up.
Normal people didnt read the initiative, they just let Costco’s $$ and their own selfishness sway their vote. No one wants the state involved in the liquor biz, but now we’ll be facing the same if not a greater evil in Costco.

JimS.
12 years ago

Part of the reason for the minimum sq footage was that the previous vote, which had no such requirements, soundly lost. People said they didn’t want every little corner store selling booze. Why run the issue again? It would only have lost again.

JimS.
12 years ago

I asked a manager at Trader Joe’s several months ago if the Madison St. location was large enough? She said they were still looking for an interpretation as to whether some square footage that now didn’t have merchandise in it, an office or something, could be counted.

RainWorshipper
12 years ago

I voted against this and I’m saddened….It feels like every sandwich shop, noodle house, and even a lot of the coffee shops sell alcohol–the convenience stores sell cheap beer by the can that ends up littering the streets, and now it’s going to be easier to get hard liquor? I wouldn’t be surprised if crime goes up, and watch your step for more puddles of vomit and or passed out inebriates in the streets. There will probably also be more of a gauntlet to run just to go shopping……I’m not a teetotaller, and I’m not for Prohibition, but I think this is a change that’s going to harm our neighborhood. I sure hope I’m wrong.

JimS.
12 years ago

Dire predictions like that have not materialized in other places. Have you never lived anywhere besides WA, somewhere that already had commercial liquor stores? Was it like that there? I’ve lived in 3 other states without State-run stores, and none of them were like that. Why should it be here?

Truthful
12 years ago

are you high, stupid, or an employee of a state run store who plans to lose your job?

The state has a HUGE markup on the liquor. Much of that will be replaced by a tax so the state gets enforcement dollars without having to DO anything.

God, people like you piss me off

alcoholic
12 years ago

Yes, very true, have read several articles already about how much the price will go up once state liquor stores close.

Kinda like the shell game we were sold on the tunnel; tolls will cover it, now, oops, we’ll be at least $200 million short.

I’ll miss the state liquor stores. And will def stock up before they close.

Tai Truong
12 years ago

Where will I get my Hibiki??

calhoun
calhoun
12 years ago

I don’t see how disallowing liquor sales in small wine shops would impact their business at all, except that they could not make profits off those sales. They already compete against big stores for beer/wine sales, so nothing changes there.

Very few people want liquor sales in gas stations and bodegas, so I think the 10,000 sq ft minimum is a very good idea.

calhoun
calhoun
12 years ago

A few months ago, after the election, a group filed a lawsuit to overturn the results of privatizing liquor sales…on the basis that the initiative included more than one change in the law.

Whatever happened to this lawsuit? Is it still pending?

JimS.
12 years ago

Truthful, you are only partly right. The state’s cut of tax on a per-gallon basis has not changed. The big markup from the state will be replaced by a markup from distributors and retailers.

Going forward, retailers will not have to buy from State-approved distributors who have guaranteed markups. So big companies like Safeway, Kroger (QFC and Fred Meyer), and Costco may choose to skip distributors and do it themselves. Costco and Trader Joe’s already private-label some of their own liquor like Vodka, so I’m sure they’ll cut distributors out of that.

There is plenty of room in the new system for prices to fall– if retailers decide to compete vigorously for business.

JimS.
12 years ago

I don’t think that proves or disproves anything. Wholesale prices are subject to competition too, so they could also go down. And big players like big grocery chains, Costco, and WalMart may skip using distributors and negotiate their own pricing with distillers.. In fact, it would be stupid if they don’t. If their wholesale prices go down it would enable them to keep their retail prices down. If they want to.

Eric
Eric
12 years ago

Well I read the initiative and voted to take the State out of the liquor business. It was not about price for me. Some prices will go up, some will go down, that is the free market in action. Too bad that small specialty stores are excluded, but that was thought necessary to get the initiative passed. I hardly think that Costco was really worried about small niche liquor sellers, they would not really be in competition for the buyers of Costco brand vodka. Hopefully the Legislature will fix this in two years.

Ryan
Ryan
12 years ago

They will. They definitely will. Trader Joe’s is where you go to buy booze in California and there isn’t some freakish phobia about it either. Many cities ban Trader Joe’s for moving in for this reason (e.g. Berkeley)but sure enough they will drive their Volvo’s that 1.5 miles over to Rockridge in North Oakland to pick up hooch.

Ryan
Ryan
12 years ago

I see more crime and vomit outside of WA state run liquor stores. It’s not like everyone is going to be staggering through the streets naked and looting because there is an option to get a bottle of booze at a grocery store.

calhoun
calhoun
12 years ago

Thanks, Jim. In reading the article, it sounds like there is a significant chance that 1183 will be overturned, because the judge affirmed that it does address more than one issue, and this problem has previously been held unconstitutional (in another case).

Hold onto your hats…it’s going to be a bumpy ride!

Broyyan
12 years ago

Have you ever been to BevMo?